Cybersecurity threats are evolving at an alarming rate, and small to mid-sized businesses (SMBs) are prime targets for cybercriminals. Many organizations unknowingly leave themselves vulnerable due to common cybersecurity mistakes. These errors can lead to devastating financial losses, reputational damage, and even legal consequences.
In this guide, we’ll cover 10 common cybersecurity mistakes SMBs make, why they’re dangerous, and how to fix them. Whether you're proactively improving your security posture or responding to customer concerns, this article provides actionable insights to safeguard your business.
Common Cybersecurity Mistakes SMBs Must Avoid
Weak or Reused Passwords
Why It’s a Problem: Many businesses still rely on weak, default, or reused passwords, making it easy for hackers to compromise accounts through brute force attacks or credential stuffing (where leaked passwords from one breach are used to access multiple accounts).
How to Fix It:
- Use a password manager to generate and store complex passwords securely.
- Enable multi-factor authentication (MFA)—preferably phishing-resistant MFA—for all accounts.
- Adopt passkeys to eliminate password vulnerabilities altogether.
For more details on securing your passwords, check out our article on why your business needs a password manager.
Lack of Cybersecurity Awareness Training
Why It’s a Problem: Employees are the first line of defense, but without training, they may fall victim to phishing attacks, social engineering, or CEO fraud, which can cost companies millions.
How to Fix It:
- Conduct regular cybersecurity awareness training to educate employees on identifying threats.
- Implement phishing simulations to test employee responses.
- Encourage a security-first culture where employees report suspicious emails and activities.
For more information, read our guide on why cybersecurity awareness training is essential for your business.
Not Having an Incident Response Plan (IRP)
Why It’s a Problem: Without a structured plan, companies waste valuable time during a cyber incident, worsening the impact of a breach.
How to Fix It:
- Develop and document an incident response plan outlining steps to take in case of a security breach.
- Conduct regular tabletop exercises to simulate cyber incidents.
- Assign roles and responsibilities to ensure a swift response.
Need help creating an IRP? Read our article on why every business needs an incident response plan.
Granting Excessive Admin Privileges
Why It’s a Problem: Providing too many users with global administrator access in Microsoft 365 or other platforms increases the risk of insider threats and unauthorized data exposure.
How to Fix It:
- Follow the principle of least privilege (PoLP)—only grant the minimum access necessary.
- Review and restrict admin access in Microsoft 365.
- Implement role-based access control (RBAC) to limit user permissions.
For more insights, check out our article on how to secure global admin access in Microsoft 365.
Ignoring Software and System Updates
Why It’s a Problem: Unpatched software contains vulnerabilities that hackers actively exploit, leading to ransomware infections and data breaches.
How to Fix It:
- Enable automatic updates for all systems, including Microsoft 365, firewalls, and applications.
- Apply critical security patches immediately after release.
- Consider managed IT services for ongoing patch management.
For more information, check out our guide on why SMBs in Calgary need managed IT services.
No Phishing Protection in Place
Why It’s a Problem: Phishing remains the leading cause of cyberattacks, tricking employees into revealing credentials or installing malware.
How to Fix It:
- Deploy email security tools to filter phishing attempts.
- Train employees on recognizing phishing emails.
- Implement phishing-resistant MFA for enhanced security.
For a deeper dive into phishing threats, read our guide on CEO phishing and how to protect your business.
No Cyber Insurance Coverage
Why It’s a Problem: Without cyber insurance, businesses face significant financial losses in the event of a breach.
How to Fix It:
- Evaluate cyber insurance policies to find one that covers ransomware, business interruption, and legal expenses.
- Ensure policy compliance by meeting security requirements set by insurers.
Not sure if you need cyber insurance? Learn more in our article on what businesses should know about cyber insurance.
Poor BYOD Security Policies
Why It’s a Problem: Employees using personal devices (Bring Your Own Device - BYOD) can create security risks if proper policies are not in place.
How to Fix It:
- Enforce mobile device management (MDM) to control and secure company data.
- Require endpoint security solutions on personal devices.
- Create a clear BYOD policy that defines security standards.
For best practices on securing employee devices, check out our guide on BYOD security risks and solutions.
Failing to Secure Cloud Data and Microsoft 365
Why It’s a Problem: Many businesses assume cloud platforms are secure by default, but misconfigurations can leave sensitive data exposed.
How to Fix It:
- Enable data encryption and audit sharing permissions.
- Review Microsoft 365 security settings to prevent unauthorized access.
- Use conditional access policies to enforce location-based or device-based access controls.
For more details, check out our article on why upgrading to Microsoft 365 Business Premium is a smart move.
No Regular Backups or Disaster Recovery Plan
Why It’s a Problem: Many businesses assume that cloud providers like Google and Microsoft automatically back up their data—but they don’t. Without proper backups, a ransomware attack, accidental deletion, or system failure can permanently wipe out critical data. Even worse, companies often realize too late that they have no way to restore lost data.
How to Fix It:
- Implement automated backups with offsite and cloud redundancy.
- Regularly test your backup restoration process to ensure it works when needed.
- Create a business continuity and disaster recovery (BCDR) plan to minimize downtime during a crisis.
For a deeper look at why relying on cloud providers isn’t enough, check out our article on why Google and Microsoft aren’t backing up your data—and what you must do to stay safe.
Strengthening Your SMB’s Cybersecurity
Avoiding these cybersecurity mistakes can help protect your business from costly breaches, downtime, and compliance violations. Implementing best practices, securing employee access, and regularly updating security policies will dramatically reduce risks.
Need help strengthening your cybersecurity? Our Managed IT Services can help you implement these security measures seamlessly. Find out how here.
Want to learn more? Contact us today!
